Labor

LABOR LAW
A. Basic Principles
1. Favored treatment clause – In case of

doubt in the implementation of the Labor
Code and its implementing rules and
regulations, the same shall be resolved in
favor of labor.
2. Principles of Equipoise- Where the

evidence presented by the parties is in
equipoise, the scale must be tilted in favor
of labor.
3. Protection of labor clause - There is a

need to protect labor as the latter is weak
and helpless. Without State’s protection,
labor which constitutes the bulk of the
1 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

population may trigger a social and
political disquietude because of
dissatisfaction in life.
4. Promotion of full employment clause-

This is designed to provide the worker
and his family to live in reasonable
comfort, that is, to enjoy a decent
standard of living.
3. Social justice clause – The target of this

principle is the common man, the
impoverished, the destitute, the poor
people, and those in the lower bracket of
society so that those who have less in life
should have more in law.

4. Doctrine of speedy labor justice – This
simply means that technical rules of
procedures and evidence are relaxed in
labor proceedings, based on the labor
code provision: “technical rules are not
binding but prior resent to an amicable
settlement.” This is also known as the
“principles of emancipation of labor
relations.”
B. Employer-employee relationship
1. Four-way test in determining employer-

employee relationship:
a) selection or engagement of the

putative employee,
b) payment of wages,

c) presence or absence of the power
of dismissal, and
d) presence or absence of the power
of control which is the most
crucial test.
2. Two-tiered test:
a) economic dependence test, and
b) control test
3. Economic relations or economic reality
test – The prevailing economic
circumstances such as payment of
salaries, of an employee, enrolling him
with SSS, BIR, Pag-ibig, Philhealth by the
employer even without a contract of
employment between them, the law
creates an employer-employee
relationship between them.

4. Working scholar, not an employee - A
working scholar is not an employee of the
school provided he is given the “real
opportunity” to finish a chosen course. If
he were not given such a real opportunity,
the law establishes an employer-employee
relationship.
5. Management prerogatives
(1)Management’s prerogative is the
power and authority to regulate,
according to his own discretion and
judgment, all aspects of employment
from hiring up to the employee’s
termination of his services. Note:
the courts decline to interfere in
legitimate business decisions.

(2)What are the management
prerogatives?
(a)The right to discipline employees;

(b) The right to dismiss employees
is a measure of self-protection.
This is subject to the principle of
non-oppression which provides
that “neither capital nor labor
shall act oppressively against the
other or impair public interest.”
(c)The right to impose a penalty
based on the “proportionality
rule”, that is, the penalty to be
imposed must be proportional to
the degree of the offense
committed.
(d) The right to transfer employees,
that is, from one position to
another position of equivalent
rank, or from one office to another
within the same business
establishment. This right must be
exercised in good faith. Thus, if
the transfer is prejudicial or
unreasonable, it would
metamorphose into a case of
constructive dismissal.
(e)The right to promote or demote.
Promotion contemplates an
increase in duties and
responsibilities usually
accompanied by an increase in
salaries. Demotion refers to a
situation where an employee is
relegated to a less important
position with a corresponding

decrease in duties and functions
accompanied by a decrease in
salary. Note: The employee has
the right to refuse promotion.
(f) The right to prescribe quota. If an
employee does not live up to such
a quota system, he can validly be
dismissed for inefficiency.
(g) The right to grant a bonus
which is a matter of privileges;
therefore, not a demandable right
on the part of the employee,
except:
- when stipulated in an
employment contract or CBA;
- when it is a company policy or
practice;

- when it is granted as an
additional compensation not
contingent on profit; and
- when it is provided by law.
(h) The right to change working
hours according to its discretion
and best judgment such as a
reduced or compressed
workweek scheme. The flexible
work assignments are designed to
save on energy costs, promote
work efficiency, and lower the
rate of absenteeism.
(i) The right to prescribe rules on
marriage.
(1)A “no spouse employment
policy” is arbitrary
discrimination against all

spouses of employees without
regard to the actual effect on
the individual’s qualifications
or work performance. Thus,
proof of that “reasonable
business necessity” must be
presented.” Under the
“reasonable business necessity”
rule, the Supreme Court
validated a discriminatory
marital policy of the company
to protect its interest. If it were
otherwise, the trade secrets,
confidential information,
manufacturing formula, and
marketing strategies could be
transmitted to a competing
company.

(j) The right to stipulate a “non-
compete” clause in an
employment contract. Under this
clause, an employee is prohibited
within a certain period after his
resignation or termination from (a
starting a similar business, trade,
or profession, or (b) working in an
entity engaged in the same
economic activity that might
compete with his former
employer. “Non-compete”
contracts are not necessarily void
for being in “restraint of trade.”
With a wealth of sensitive
information, trade secrets,
marketing strategies, and other
business practices which were

acquired by him during his
employment, he could use them
to tremendous damage to his
former employer.
C. Illegal recruitment
(1)Types of illegal recruitment:
(a)Simple - committed by a licensee

or holder of authority against one
or two persons only;
(b) Non-licensee – committed by a
non-licensee or non-holder of
authority;
(c)Syndicated – committed by a
syndicate if carried out by a group

of three (3) or more persons in
confederation with one another;
(d) Large scale – committed
against three (3) or more persons
individually or as a group.
(2)In large-scale illegal recruitment, the

number of victims is essential or
determinative. Failure of the
prosecution that the offense is
committed against (3) or more is
fatal to its cause of action.
(3)Doctrinal rulings on illegal

recruitment
(a)Giving the impression that he has
the ability to enlist workers for
overseas jobs.

(b) Failure to present receipts of
money paid for overseas
placement will not affect the case
as it can be proved by clear and
convincing evidence of the
prosecution;
(c)Substitution of a contract to the
prejudice of an OFW;
(d) Failure to reimburse expenses
for documentation and processing
for purposes of deployment;
(e)Recruitment agency’s employee
not registered with POEA;
(f) Inducing applicants to part with
their money upon false
misrepresentations;
(g) Money is not material in the
prosecution of illegal recruitment;

(h) Absence of documents
evidencing recruitment
strengthens the case for illegal
recruitment;
(i) An employee of an illegal
recruiter is liable as a principal by
direct participation.
(4)Illegal recruitment and estafa cases

may be filed simultaneously or
separately. The filing of a case of
illegal recruitment does not bar the
filing of estafa under the Revised
Penal Code. Note: The doctrine of
double jeopardy will not set in
because illegal recruitment is malum
prohibitum but estafa is malum in se.

(5)Solidary liability of the principal
employer (foreign government
instrumentality) cannot be sacrificed
in favor of immunity from suit.
(6)Although the recruitment agency

and the foreign principal had
already severed their agency
agreement at the time the worker
was injured, the recruitment agency
can still be sued for violation of the
contract if no notice of termination of
the agency agreement with its
foreign principal was given to the
OFW.
(7)Liability of the previous owner not

extinguished by an undertaking to

assume responsibility by the new
owner.
(8)Nature of OFW’s employment is

contractual in nature. If there was
pre-termination of the employment
contract by the employer, the OFW
is deemed constructively dismissed
and therefore entitled to an award of
nominal damages pursuant to the
Agabon ruling.
D. Remedies in Labor Standards Benefits
(1)It is settled labor standards benefits

under Book III of the Labor Code
such as money claims exceeding
P5,000.00 properly belong to the

jurisdiction of the Labor Arbiter
under Art. 224 of the Labor Code.
(2)May the Secretary of Labor take

cognizance of money claims beyond
P5,000.00, for e.g., the million pesos?
The answer is yes if the money
claims are the issues in the exercise
of his assumption power under Art.
278(g) of the Labor Code.
(3)May the voluntary arbitrator take

cognizance of such money claim?
The answer is also yes, that is, by
agreement of the parties.
(4)May the Regional Director of the

DOLE take cognizance of money

claims regardless of the amount of
the claim? Yes, in the exercise of its
visitorial and enforcement powers
under Art. 128 of the Labor Code.
(5)May the Regional Director take

cognizance of the money claim in the
amount of P5,000.00 pesos or below?
Yes, in the exercise of its
adjudicative function under Art. 129
of the Labor Code with the following
elements/ requirements:
(a)A complaint filed by any
employee or house helper,
(b) The claimant, no longer
employed, does not seek
reinstatement, and

(c)The aggregate amount of the
claim does not exceed P5,000.00.
E. Labor-only contracting vs. Permissible

job contracting
(1)Labor only contracting is against the

law; therefore, totally and absolutely
prohibited.
(2)What is the legal effect if there is a

finding of labor-only contracting?
The labor-only contractor is treated
merely as an agent or intermediary
of the principal or indirect employer.

(3)When does labor-only contracting
exist? It exists where the contractor
does not have substantial capital or
investments in the form of tools,
equipment, machinery, and work
premises among others. It has no
right of contract over the
performance of the work of its
employees.
(4)Distinctions between legitimate job

contracting and labor-only
contracting.
(a)The legitimate job contractor

provides the services; while, the
labor-only contractor provides
only the manpower.

(b) In job contracting, the principal
is considered an indirect
employer; while, in labor-only
contracting, the principal is the
direct employer.
(c)In job contracting, there exists no
employer-employee relationship
between the employees of the job
contractor and the principal;
while in labor-only contracting
there exists an employer-
employee relationship between
the principal and employees
supplied by the labor-only
contractor.
(d) In job contracting, the solidary
obligation of the principal and the
legitimate job contractor is only

for a limited purpose, that is, to
ensure that the employees are
paid their wages; while, in labor-
only contracting, the principal is
liable for the payment of wages of
employees supplied by such
labor-only contractor, the
principal being treated as a direct
employer.
(5)What are the tests in determining

legitimate job contracting?
(a)Registration test – which requires

the contractor to be registered
with the DOLE;
(b) Right of control test – which is
used in determining whether or

not the contractor’s manner and
methods of performing his job
contracting is free from the
control and direction of the
principal in all matters connected
with the performance of the work
except as to the results thereof.
(c)Substantial capital or investment
test – which refers to the issue of
whether or not the contractor has
substantial capital or investments
in the form of tools, equipment,
machinery, etc.
(d) Legal rights and compliance

test – which refers to the issue of
whether or not the Service
Agreement between the Principal

and the Contractor is compliant
with the rights and benefits of
workers under labor laws.
F. Law on Dismissal
A. Law on Dismissal
1. Security of Tenure – is the right of
a worker to continue in
employment until the same is
terminated for a valid cause (just
or unauthorized).
2. Doctrine of Perpetual
Employment – Security of tenure
is a constitutionally guaranteed
right of an employee. However, it
does not mean perpetual

employment for the employee
(Phil. Village Hotel v. NLRC, G.R.
no. 115033, 28 February 1994).
This doctrine is opposed to the
exercise of management
prerogative to dismiss an
employee for a valid cause.
3. Reliefs/Normal Consequences of
Illegal Dismissal
(a) Reinstatement – the

restoration of the dismissed
employee to his former
position without loss of
seniority rights and other
privileges.

(b) Full backwages – the
restoration of the lost income of
an employee due to illegal
dismissal. Full backwages are
awarded because income
earned by the employee from
other sources shall not be
deducted from the backwages.
(c) Damages – indemnity
recoverable by an employee
who has sustained an injury to
his right to labor which is
property within the mantle of
constitutional protection.
(d) Attorney’s Fees – Attorney’s
fees are awarded to an
employee due to unlawful
withholding of his wages, or he

is compelled to litigate his case
by hiring a lawyer to represent
him. An award of attorney’s
fees under Article III of the
Labor Code is in the form of
damages in their extraordinary
concept.
(e) 6% legal interest on
monetary awards.
4. Management Prerogative to
Dismiss – it is a management
prerogative to dismiss its
employee; however, it should be
exercised without abuse of
discretion. It is subject to
limitations founded in law, CBA,

or principles of fair play and
justice (Ferrer v. NLRC, G.R. No.
100898, 5 July 1993).
5. Doctrine of Incompatibility –
Where the employee has done
something that is contrary or
incompatible with the faithful
performance of his duties, his
employer can validly dismiss him
(Manila Chauffeur’s League v.
Bachrach Motor Co., O.G 159).
6. Procedural requirements in
Dismissal
(a) Pre-Notice (First Notice) or

Formal Specific Charges –

The purpose of formal
charges is to inform the
employee of the specific
charges against him.
(b) Adequate and Responsive

Answer – The purpose is to
enable the employee to prepare
adequately his responsive and
intelligible answer.
(c) Ample Opportunity to be
Heard – Under existing
jurisprudence, while a formal
hearing or conference is ideal,
it is not an absolute mandatory
or exclusive avenue of due
process. What is paramount in
termination for a just cause is

to provide an employee an
“ample opportunity to be
heard and to defend himself.”
Indeed, notice and hearing can
be dispensed with (Perez v.
PT&T, G.R. No. 152048, 29
April 2009).
(d) Post Notice (Notice of
Dismissal) – The decision to
dismiss is contained in the last
notice which states the reason,
therefore. This is also designed
for the employee to contest the
validity of the dismissal by
filing the proper complaint for
illegal dismissal with the
Regional Arbitration Branch of
the NLRC.

Types of Due Process
(a) Constitutional – protects a

person from the government
and assures him of his rights in
criminal, civil, or
administrative proceedings.
(b) Statutory – due process
found in the Labor Code which
protects an employee from
illegal dismissal.
(c) Contractual – due process
found in company policy
which provides for the steps to
be followed in dismissal but
the same was violated by the
company.

Types of Dismissal
(a) Dismissal for a just cause

with due process
(b) Dismissal for an authorized
cause with due process
(c) Dismissal for health reasons
with due process
(d) Dismissal without just or
authorized cause with due
process
(e) Dismissal for just or
authorized cause without due
process (belated due process
rule). An employee dismissed
for violation of this rule is
entitled to an award of

damages under Jaka Food and
Agabon Rulings.
(f) dismissal for a false or non-
existent cause.
Degree of Proof in Illegal

Dismissal
As a rule, the quantum of proof

required in labor proceedings is
substantial evidence, that is,
relevant evidence that a
reasonable mind might accept as
adequate to justify or prove the
conclusion. However, the onus
probandi to prove the validity of
dismissal rests upon the employer
to prove that the dismissal of an

employee is for a just cause with
clear and convincing evidence.
This quantum of proof required

is to give flesh and blood to the
security of the tenure clause of the
constitution (Duty-Free Phils. V.
Tria, G.R. No. 174809, 27 June
2012).
Circumstances Affecting
Validity of Dismissal –
(Proportionality rule or Doctrine
of Commensurate Penalty)
(a) the gravity of the offense

(b) length of service
(c) employment position

(d) the totality of infractions
(collective infractions rule)
(e) nature of the business
(f) first – offense rule
(g) principle of compassion,
charity, and understanding
(h) principle of equity
Just Causes for Dismissal
(a) Serious Misconduct –

wrongful conduct committed in
an aggravated or serious
manner. E.g., sexual
harassment, sexual intercourse
on company premises, fighting
on company premises, drug
use, etc.

(b) Willful Disobedience – this
is also known as
insubordination which is a
refusal to obey a reasonable
and lawful. An isolated case of
insubordination will not justify
dismissal but a repeated
commission of the same
justifies dismissal.
(c) Gross and Habitual Neglect
of Duty – it connotes want of
care in the performance of
one’s duties. E.g., a company
guard who was caught
sleeping during his tour of
duty. Even if the act is not
habitual if it were gross, it will
still justify dismissal.

(d) Fraud or Willful Breach of
Trust
Fraud – involves a breach of
legal duty, trust or confidence
justly reposed and is injurious
to another.
Breach of Trust – involves
matters that relate to the
protection of company money
or property. Thus, an employee
entrusted with trust and
confidence breached such trust
resulting in the employer’s loss
of confidence.
(e) Commission of a Criminal
Offense – against the person of
the employer, immediate
members of his family,

including managerial
employees.
(f) Analogous Causes – such as
abandonment, violation of a
no-gambling rule or gross
inefficiency, etc.
Distinctions between Just-
Cause and Authorized Cause
Dismissal
(a) In a just-cause dismissal, the
dismissal process is initiated by
the employee. On the other
hand, authorized-cause
dismissal, is initiated by the
employer.
(b) In just-cause dismissal,
payment of separation pay is
not required (Toyota Ruling).

In authorized cause, the law
mandates payment of
separation pay.
(c) For failure to comply with
due process, a requirement by
the employer in just-cause
dismissal, he is liable to pay
indemnity which is tempered
(Php 30,000.00). For violation of
the due process requirement by
the employer, in authorized-
cause dismissal, he is liable to
pay indemnity which is stiffer
(Php 50,000.00).
Authorized Causes

(a) Introduction of the labor-
saving device (automation) –
replacement of workers by
machines in order to affect
more economy and greater
efficiency in the methods of
production.
(b) Retrenchment (Downsizing,
Delayering) – reduction of
personnel due to poor financial
returns designed to cut down
on costs of operations. Also, its
purpose is to save a financially
ailing company from
eventually collapsing (JATA
Gen. Services v. NLRC, G.R.
No. 148340, 26 January 2004).

(c) Redundancy – it exists
where the services of an
employee are in excess of what
is reasonably demanded by the
actual requirement of the
enterprise. Does redundancy
refer to duplication of work?
No. A position is redundant
when it is superfluous and it is
the outcome of some factors
such as over-hiring of workers,
a decline in the volume of
business, etc.
(d) Disease - when an employee
suffers from a disease that
cannot be cured for (6) months
and his continued employment
is prohibited by law or

prejudicial to his health or to
the health of his co-employees,
the employer shall terminate
his services. What is
contemplated by law is an
either contagious or non-
contagious disease.
(e) Closure of Business – it is a
management prerogative to
close its business operations
due to serious economic
reverses or not due to adverse
economic conditions.
Total Closure – due to serious

economic conditions, the
company is not liable to provide
separation pay. However, if it is

not due to serious financial
reverses, it is liable to pay ½
month pay for every year of
service. Note that partial closure
of business is treated as
retrenchment; thus, an employee
is entitled to ½ month’s pay for
every year of service.
Other forms (just causes) of

termination by an employee
(constructive dismissal)
Constructive dismissal
(dismissal in disguise) – is
quitting from a job of an
employee because continued
employment has become
impossible, unreasonable,
unlikely or unbearable under the
circumstances; it includes
demotion in rank, diminution of
salaries, benefits, and other
privileges.
(a) Serious insult – any act of

the employer that injures or
wounds the feelings of an
employee which may compel
the latter to quit his job results
in constructive dismissal.
(b) Unbearable treatment – any
act that affects the mind and
body such as it produces a
reasonable apprehension of
physical violence, causes
mental distress and sorrow

which compelled an employee
to resign and results in
constructive dismissal.
(c) Commission of a Criminal
Offense by the employer
against the person of an
employee – such as slapping
the employee plus the threat of
scratching her face with a pair
of scissors constitutes an
offense that will justify the
employee’s act of severing the
employer-employee
relationship.
Note: In constructive dismissal, the
most significant element is quitting
the job.

Employment not deemed
terminated
(a)Bona fide suspension of

operation of business not
exceeding (6) months.
(b) Fulfillment of a personal

civic or military duty even it
exceeds (6) months.
(c) Floating status or off-detail
status for a period of (6)
months.
(d) Employee on a leave of
absence.
(e) The 30-day time frame for
preventive suspension of an
employee. If it exceeds 30 days

it metamorphoses into a case of
constructive dismissal unless
paid his monthly salary.
(f) Employee filed a case of
illegal dismissal. An employer-
employee relationship is
merely suspended.
Types of Regular Employment
A. Regular Employment
(1)By nature of work – the employee

is engaged to perform the job
which is usually necessary or
desirable in the usual business or
trade of the employer. (E.g., a
mechanic in an auto repair shop)

(2)By years of service – the employee
renders services for at least one
year of service, whether such
service is continuous or broken,
with respect to the activity in
which he is employed.
(3)Upon the expiration of the

probationary period – the general
probationary period is six (6)
months; beyond the six-month
period, the employee becomes a
regular employee. For teachers
with full-time satisfactory service,
the probation is three (3) years not
three (3) school years.

Note: The employer and the employee
can agree on probation below six (6)
months which is favorable to the
employee. Also, they can agree beyond
six (6) months especially if the nature of
the job requires extensive training
(PLDT Ruling).
(4)Upon expiration of the training

period of special types of workers
under Book II of the Labor Code.
(5)Pre-termination of learnership
contract – provided a learner has
already been trained for two (2)
months.

(6)Casual employee – who has
rendered at least one year of
service, a regular employee.
(7)Constant rehiring or renewal of

contract - such as constant project
employees; exception OFWs and
seamen who were employed for a
fixed term or contractual basis.
(8)Seasonal employees who are

employed from season to season
performing the same task.
(9) Non-project employees

belonging to the work pool who
are not allowed to provide their
services to other employers.

B. Casual Employment – the employee
is engaged to work in an activity that
is not usually necessary or desirable
in the usual business of the
employer. E.g., A carpenter hired to
repair the roof of an auto repair shop
is a casual employee because he
performs a job that is only incidental
to the principal activity of the
employer. If the carpenter was able
to repair it for three (3) years, what is
his status?
C. Fixed-term, fixed-period, or
contractual employment – An
employee is engaged to work on a
specific project or undertaking, the

completion of which has been
determined at the time of the
engagement of the employee. The
contract terminates by itself with the
expiration of the contract or
completion of the project.
B. Law on Prescription of Offenses and

Claim
(a) Purely money claims – 3 years
(b) Incremental proceeds arising
from tuition fees – 3 years
(c) Service Incentive Leave – 3
years
(d) Criminal cases under the Labor
Code – 3 years
Except:
*Unfair labor practice – 1 year

*Simple illegal recruitment – 5 years
*Syndicated illegal recruitment – 20
years
*Large-scale illegal recruitment – 20
years
*Criminal aspect in Social Security
Law – 4 years
(e) Union fund – 3 years
(f) Employee’s compensation
claims – 3 years
(g) Illegal dismissal – 4 years
(Callanta v. Carnation Phils., 145
SCRA 268)
(h) Reinstatement – 4 years
(i) Backwages, Damages,
Attorney’s fees, 6% legal interest on
monetary awards – 4 years (Arriola

v. Pilipino Star, G.R. No. 175689, 13
August 2014)
(j) Social security claims – 10 years
Government claims on premiums –
20 years
(k) GSIS claims – 4 years
Except:
*Life insurance claims –
imprescriptible
*Retirement claims – imprescriptible
C. Labor Relations Law
1. Trisectoral composition of the NLRC
The NLRC is a trisectoral body

whose composition comes from the
government, labor, and management

sectors. It sits en banc for purposes
of policy determination and
promulgation of rules and
regulations governing its
proceedings. The hearing and
disposition of cases before any of its
divisions or its regional arbitration
branches are an exercise of its quasi-
judicial functions.
2. NLRCs adjudicatory functions

exercised through division
The NLRC exercises its

adjudicatory functions and all other
powers and duties through its
divisions. The Divisions of the
NLRC have exclusive appellate

jurisdiction over cases within their
respective territorial jurisdiction
(Mina v. NLRC, 14 July 1995).
3. NLRC Commissioners and Labor

Arbiters
The NLRC Commissioners and

Labor Arbiters shall hold office
during good behavior until they
reach the age of 65 years. The
President may extend their services
to 70 years upon the
recommendation of the Commission
en banc.

The President shall appoint
them without the confirmation of the
Commission on Appointments.
4. Jurisdiction of the Labor Arbiter
(a) Unfair labor practices. Except -

ULP cases under the assumption
power of the President or
Secretary of Labor in a vital
industry dispute or by agreement
of the parties through voluntary
arbitration.
(b) Termination disputes. Except –
termination disputes under the
assumption power of the
President or Secretary of Labor or

by agreement of the parties
through voluntary arbitration.
(c) Money claims in excess of Php
5,000.00. Except – money claims
under the assumption power of
the President or Secretary of
Labor, by agreement of the parties
through voluntary arbitration or
through the exercise by the
Regional Director of the DOLE of
its visitorial (inspection) or
enforcement powers.
(d) Damages. An award of
damages is brought about by his
illegal dismissal. The purpose of
damages is indemnity, not
punishment but to alleviate the
moral suffering he has undergone

by virtue of his unwarranted
dismissal.
(e) All matters that pertain to any
concerted activity such as strike,
picketing, lockouts, etc.
(f) All claims that have a
reasonable causal connection with
the employer-employee
relationship.
Note: With employer-employee
relationship – labor tribunals;
without employer-employee
relationship – regular courts.
(g) All claims arising out of an
of an OFW including damages
and disability claims (Sec. 10, R.A.
8042 as amended by R.A. 10022).

(h) All claims of employees of
government-owned or controlled
corporations without original
charters known also as
subsidiaries or corporate
offsprings; governing law – labor
code.
(i) Jurisdiction over collateral
matters – If the Labor Arbiter has
jurisdiction over the main case,
likewise, he has jurisdiction over
all matters that are collateral or
incidental thereto. E.g., illegal
dismissal cases, those that are
collateral thereto may include
determination of backwages,
damages, attorney’s fees, issuance

of a writ of execution, or motion
to quash.
(j) Jurisdiction over deductions for
tax purposes are money claims
under Labor Arbiter’s jurisdiction.
5. Cases not cognizable by the Labor

Arbiter
(a) The aggregate amount of

money claim does not exceed
Php5,000.00.
(b) Claims for employee’s
compensation, social security,
Philhealth, and maternity benefits.
(c) Claim for liquidated damages
for breach of a non-compete
provision in an employment

contract is intrinsically a civil
dispute.
(d) Delito, quasi-delito or tort
(e) Intra-corporate cases such as a
dismissal of corporate officers
shall be cognizable by the
Regional Trial Court acting as a
corporate court under the
Securities Code of 2000.
The corporate officers are those
mentioned in the Corporation
Code and the by-laws. It is settled
the Board of Directors can no
longer create corporate offices
through Board Resolutions
because their power to create such
offices cannot be delegated
(Matling Industrial and

Commercial Corp., v. Corros, G.R.
No. 157802, 13 October 2010).
(f) Dismissal case filed against a
local water district is governed by
the Civil Service Law.
(g) cases involving government-
owned or controlled corporations
with original charters are
governed by Civil Service Law
(P.D. 807, as amended).
(h) Cases on unresolved
grievances arising from
interpretation or enforcement of
CBA or company personnel
policies.
(i) Cases arising from the violation
of training agreements. E.g., in
Apprenticeship, jurisdiction rests

upon initially with
Apprenticeship Plant Committee.
(j) International organizations with
functional immunities such as
SEAFDEC, IRRI, and ADB are
beyond the jurisdiction of the
Labor Arbiter.
(k) Members of the diplomatic
corps with diplomatic
immunities;
(l) Money claims against
government agencies such as the
Department of Agriculture. The
claim should be filed with the
Commission on Audit.
(m) The Labor Arbiter has no
jurisdiction over cases that have
become final and executory under

the doctrine of immutability of
final judgment. The exception is
when there was a motion filed for
purposes of re-computation of
monetary awards (Lim v. HRM,
Phils., G.R. No. 201483, 14 August
2014).
(n) The Labor Arbiter has no
power to issue a writ of injunction
in labor disputes involving a
strike or lockout (Article 224,
infra).
6. NLRC Powers
(a) Contempt power – the NLRC

has the power to hold a person in
contempt and impose appropriate

penalties for any misbehavior or
misconduct that may obstruct the
exercise of its powers and
functions.
(b) Injunctive power – the purpose
of an injunctive writ is to preserve
the status quo until the merits of
the case are fully heard. The
issuance requires a hearing at
which parties are given the
opportunity to be heard. May the
NLRC issue a Temporary
restraining Order ex parte? Yes.
Reason – it is a mere interlocutory
order which contemplates further
hearing for the application of a
temporary injunction upon notice
to the adverse party. Indeed, it

can be issued without notice and
hearing when the urgency of the
situation or extreme necessity
demands (Bisig v. NLRC, 226
SCRA 499).
(c) Cases under assumption power
of the President and Secretary of
Labor certified to the NLRC for
compulsory arbitration.
(d) Appellate power
(1) Cases decided by the Labor
Arbiters under Article 224 of
the Labor Code and Section
(10) of R.A. 8042 over cases
involving OFWs and seafarers.
(2) Wage distortion cases

decided by the Labor Arbiters

under Article 124 of the Labor
Code in nonunionized
establishments.
(3) Cases decided by the Labor

Arbiters on contested cases
under Article 128 of the Labor
Code on visitorial and
enforcement powers.
(4) Cases decided by the

Regional Directors of the
DOLE in the exercise of their
adjudicatory functions under
Article 129 of the Labor Code.
7. Principle of emancipation of labor

relations (doctrine of speedy labor

justice). This principle simply
provides that rules of procedure and
evidence in courts of law or equity
shall not control labor proceedings.
The same may be relaxed in labor
cases to serve the demands of
substantial justice (Havtor v. NLRC,
372 SCRA 271).
8. Position paper proceedings, not

violative of due process Labor cases
can be decided on the basis of
position papers and other
documents without resorting to
technical rules of procedure and
evidence observed in the court of
justice. Such a procedure complies
with the requirements of due

process (Asia World v. Ople, 152
SCRA 219).
9. Grounds for appeal
(a) Abuse of discretion

(b) Fraud or coercion
(c) Graft and corruption
(d) Question of Law
(e) Serious error in the finding of
facts
10. Requirements for an appeal to

the NLRC
(a) A memorandum of appeal

copy furnished to the other party.
Failure to copy furnish the other

party is not fatal to appeal; it is a
mere procedural and formal
lapse.
(b) Payment of appeal, docket fee
of filing fee. Nonpayment is fatal
to appeal because payment of the
docket fee is not a matter of
procedure but a matter of
jurisdiction. It is a jurisdictional
requirement (Acda v. Minister of
Labor, 119 SCRA 306).
(c) Posting of cash or surety bond.
if the judgment involves a
monetary award. The law fixes (2)
types of bonds, cash or surety.
The exception is property bond
pursuant to UE-RM ruling.

Note: The appellant employer should
post a reasonable amount of the bond
(20% and above) or the full amount
of the bond to perfect an appeal. 10%
bond is not reasonable.
(d) Proof of service to the adverse
party.
11. Motion to reduce bond

accompanied by posting an appeal
bond Pursuant Mc Bernie v. Ganzon,
the appellant employer can post 10%
of the amount of the bond. However,
if the NLRC denied the motion, the
employer is given a (10) day fresh
period to post the full amount of the
bond. The 10% posting applies only

to a motion to reduce the bond to
perfect an appeal.
12. Receipt of evidence for the first

time on appeal, allowed It is settled
the NLRC is not precluded from
receiving evidence, even for the first
on appeal, because technical rules of
procedure are not binding in labor
cases v. NLRC; G.R. No. 148372, 27
June 2005).
13. Change of theory on appeal, not

proper A change or theory on appeal
is not proper. It is offensive to the
basic rules of fair play and violative
of due process.

Thus, the prescription cannot be
raised for the first time on appeal,
much less in a motion for
reconsideration (Dosch v. NLRC; 123
SCRA 296; Jacqueline Ind. V. NLRC,
69 SCRA 242).
14. Labor Arbiter’s decision as to

reinstatement aspect, immediately
self-executory (Pioneer ruling)
As to the reinstatement aspect of

the decision of the Labor Arbiter, it
is immediately self-executory; that
is, the employee is restored to his
former position sans the procedural
requirement of a writ of execution.
This applies only at the Labor

Arbiter level not with NLRC, C.A.,
or the Supreme Court.
15. Reinstatement pending appeal

(Refund doctrine abandoned) The
employer is given (2) options under
the law, that is, to reinstate the
employee actually or on the payroll.
If the Supreme Court finally finds
legal dismissal and sets aside the
decisions a quo finding illegal
dismissal, the employee reinstated in
the payroll is not required to
reimburse the salaries received
pending appeal because the
principle of social justice renders
inapplicable to the civil law doctrine

of unjust enrichment (Garcia v. Pal;
G.R. 164856, 20 January 2009).
16. NLRC decision subject to a

petition for certiorari pursuant to St.
Martin’s Funeral Home ruling the
party adversely affected by the
NLRC decision may obtain a review
and nullification of that decision
through the extraordinary writ of
certiorari under Rule 65 to be
initially filed with the Court of
Appeals under the doctrine of
hierarchy of Courts.
17. Petition for review on certiorari to

the Supreme Court from the decision
of the Court of Appeals under Rule

45 The appeal from a final
disposition of the Court of Appeals
is a petition for review on certiorari
under Rule 65. Under Rule 45, the
reglementary period to appeal is
fifteen (15) days from notice of
judgment or denial of the motion for
reconsideration (ATC v. CA; G.R.
144664, 16 March 2004).
18. Judicial review of questions of facts
The final order or resolution of

the Court of Appeals may be
appealed to the Supreme Court by
filing a petition for review under
Rule 45 grounded on purely
question of law, which is fifteen (15)

days from notice of judgment or
denial of the motion for
reconsideration.
Questions of facts should not be

reviewed by the Supreme Court as it
is not a trier of facts. However,
judicial review of findings of facts is
allowed under the following
instances:
(a) When the factual findings of

the Labor Arbiter, the NLRC,
and the Court of Appeals are
contradictory or diametrically
opposed to each other.
(b) When the conclusions of the
CA are based on speculations,

surmises, conjectures, and
misapprehension of facts.
(c) When the CA failed to
consider facts that if properly
considered would justify a
different conclusion (Bascon v.
CA; G.R. No. 144899, 5
February 2004).
19. Writ of execution issued by the

Labor Arbiter
After termination of the pre-

execution conference, the Labor
Arbiter can issue a writ of execution
as it is its ministerial duty once the
decision has become final and
executory.

20. Grounds for a motion to quash
A writ of execution may be quashed

on the following grounds:
(a) The writ has been

improvidently issued;
(b) The writ is issued to a
non-party;
(c) The writ is issued without
authority; and
(d) The writ is defective due
to the irregularity in the issuance
(Heirs of Guballa, 168 SCRA 518).
21. Execution pending appeal

A party may already move for the
execution of the monetary award of
the NLRC even during the pendency
of the petition for certiorari of the
NLRC decision awarding the same
with the Court of Appeals or the
Supreme Court unless restrained by
the latter (Brizuela v. Dingle; G.R.
175371, 30 April 2008).
22. Bureau of Labor Relations
*Concurrent and original jurisdiction

of BLR and the Regional Office of the
DOLE
(a) All inter-union and intra-
union conflicts; and

(b) All disputes affecting
labor-management relations in all
workplaces.
*Concurrent administrative
functions of the BLR and DOLE
Regional Office
(a) Registrations of labor unions
(b) Keeping a registry of all labor
unions; and
(c) Keeping a file of all CBAs.
23. Complaints involving

federations, national unions, etc.
All complaints or petitions

involving federations, national
unions, or industry unions shall be
filed with DOLE Regional Office or

the BLR; but such complaints shall
be heard and resolved by the BLR.
24. Conciliation/Mediation
function of the NCMB
The conciliation/mediation
functions of the BLR are now
transferred to the NCMB.
25. Duties of the NCMB in case of

bargaining deadlock/stalemate
If the parties fail to settle issues in

collective bargaining, any party may
declare a deadlock. Once there is a
deadlock, the law directs the NCMB
to intervene either:

(a) motu proprio;
(b) upon request of the
management;
(c) upon request of the
union; or
(d) upon the joint request of
the management and the union.
26. Quitclaim declared null and

void
A quitclaim in which the

consideration is scandalously low
and inequitable does not bar the
pursuit of the worker’s legitimate

claim. It is null and void for being
contrary to public policy (Cruz v.
NLRC, 203 SCRA 286).
27. Registry of unions, registration

of CBA
The BLR shall keep a registry of

all legitimate labor organizations. It
shall also register CBAs.
28. Validity of CBA
The substantive validity of the

CBA is not affected by non-
registration. However, an
unregistered CBA does not bar
certification election rule.

29. Contract-bar rule
The existence of the duly

registered CBA bars the holding of a
certification election or any action
that disturbs such CBA.
30. Exceptions to the contract-bar

rule; certification election not barred
(a) CBA is not registered.

Since it is not registered, it will
not bar certification election;
(b) CBA is
incomplete/inadequate
(sweetheart contract);

(c) CBA was prematurely
extended;
(d) Mass disaffiliation from
the majority union (schism or
split); and
(e) CBA entered into during
the pendency of a petition for
certification election.
31. Legal effects of registration of a

union (Rights of a union)
(a) Rights of representation-

applies only to union members;
(b) Right to be certified as the
collective bargaining agent in the
bargaining unit – applies to all
employees;

(c) Right to acquire and dispose of
property;
(d) Right to sue and be sued in its
registered name;
(e) Right to engage in activities
which redound to the benefit of
union members;
(f) Right to tax exemption; and
(g) Right to be furnished with
employee’s audited financial
statement upon written request of
the union.
32. Right to self-organization
The right to self-organization

applies to all employees to form, join
or assist in the formation of a labor

organization or workers association.
This includes employees in
commercial, industrial, agricultural,
religious, charitable, medical, or
education institutions operating for
profit or not. Ambulant,
intermittent, and itinerant workers,
self-employed, rural workers, and
those without any definite
employers may form a worker
association for their mutual aid and
protection but not for purposes of
collective bargaining.
33. Who can/cannot join a labor

organization?

(a) Supervisors cannot join a rank-
and-file union; co-mingling is
prohibited;
(b) Employees-members of a
cooperative cannot join a labor
organization; an employee-
member cannot bargain with
himself or his co-owners (CNEEC
v. SOLE, 13 September 1991);
(c) Confidential employees
performing managerial functions
cannot join a labor organization;
(d) Confidential employees who
have access to confidential
matters of persons who exercise
managerial functions in the field
of labor relations. However,
confidential employees without

access to confidential labor
relations matters can join (NATU
v. Torres, 29 December 1994);
(e) Working children can join a
labor organization (P.D. 603);
(f) Homeworkers can join a union
(D.O.5, 4 February 1992);
(g) Independent contractor’s
employees can join a union (D.O.
18-02, 2002);
(h) In the government sector,
the following cannot form or join
a rank-and-file union:
1) Members of the AFP, PNP,
BJMP, BFP;
2) High-level employees
exercising managerial functions
(E.O. 180);

(i) Employees of international
organizations may join but not for
purposes of collective bargaining
(Kapisanan v. SOLE, 28
September 1990);
(j) Alien employees cannot join
unless their country extends the
right to Filipino workers (D.O. 40-
03);
(k) Managerial employees
cannot join a union (Article 251,
Labor Code);
(l) Supervisors may join a
union;
(m) Rank and file employees can
join a union; and
(n) Rank and file union and a
supervisor’s union belonging to

the same company can join the
same federation (Article 251,
Labor Code).
34. Unfair Labor Practice
(a) An unfair labor practice is an

act by an employer – or their
agents which violates the right of
workers to self-organization.
(b) Nature of ULP – it is not only
an administrative or civil offense
but also a criminal act. But the
criminal aspect of ULP can be
filed only with the regular courts
provided there was already a final
verdict by the Labor Arbiter on
the administrative or civil aspects.

(c) Settled is the rule that an
should exist in ULP. (1) ULPs
committed by agents
(nonemployees) of either
company or union, (2) yellow-dog
contract; and (3) doctrine of an
innocent bystander (Liwayway
Publishing Ruling).
(d) Employer ULPs
(1) Interference, Restraint,
Coercion – committed through
economic, physical, or
psychological means. The term
“interference” is all-embracing
as it includes all acts of both the
employer and the union

designed to discourage active
unionism.
(2) Yellow-dog contract – A
person who signs this contract
is a cowardly dog because he
renounced his right to self-
organization. Here, the
employer requires an applicant
for the job that he should never
join the union in the bargaining
unit, once employed.
(3) Company unionism – It may
be formed at the instance of an
employer or it is already an
active union but the employer
dampens its militancy by
capturing it by kindness or by
maintaining a close personal

relationship with union officers
or providing economic
concessions to such union.
(4) Discrimination – manifests
itself in the following:
Dismissal, lay-off, closure of
business, rehiring, transfer,
retrenchment, or threat to close
the plant because of union
activities.
(5) Refusal to bargain – In duty
to bargain requires the parties
to manually bargain promptly
on reasonable terms and
conditions of employment and
in good faith. In this context,
the following ULPs may be
committed:

a) Delaying the bargaining
process by the employer as it
has no intention of signing a
CBA with the union –
surface bargaining.
b) Delaying the submission by
the employer of its counter-
proposal or the employer in
its counterproposal
intimated to the union that is
submitting the same on a
take it or leave it bargaining
– Boulwareism.
c) The union submitting a CBA
proposal containing
economic demands that are

unreasonable or exaggerated
– Blue-sky bargaining.
d) The employer sold the
stocks to a dummy
corporation or puts up a
shop in another area where
the operation of the business
or equipment is transferred –
a Run-away shop.
(6) Gross/Flagrant violation

of the CBA – it refers to the
violation of the economic
provisions in the CBA such as
escalator clause, across-the-
board wage increase, etc.

(7) Providing testimony in
judicial, quasi-judicial, or
administrative bodies. This
ULP is not related to a violation
of the Right to self-
organization.
(8) Providing the union with

negotiation fees – The purpose
is to prevent a sweetheart
contract.
(9) Contracting out of services

to an independent contractor
beyond six (6) months –
constructive dismissal. 35.
UNION ULPs
100 LABOR LAW as per SC syllabus - Dean Salvador A.

Poquiz
(a) Restraint or coercion
such as preventing
employees who do not wish
to join the strike in going to
or returning from work
during the strike.
(b) Discrimination – such as
the act of expelling a union
member for filing charges
against union officers.
(c) Featherbedding activities
– This ULP committed
against the employer is an
extortion of money or other
things of value for services
rendered or unperformed by
the union. The union makes

Poquiz
work or prolongs the work
in order to earn.
(d) Violation of the duty to
bargain collectively – The
union is guilty of ULP if it
compels an employer to
negotiate a CBA with it
during the pendency of a
petition for certification of
the election.
(e) Acceptance of
negotiation fees from the
employer. This is designed
to prevent an inadequate
CBA known as a sweetheart
contract.
(f) Violation of the CBA – A
strike staged by the union in
Poquiz
violation of the conclusive
arbitration clause in the CBA
is an unfair labor practice.
(g) Blue-sky bargaining –
The economic proposals of
the union are exaggerated or
unreasonable. They are
beyond the capacity given
by the employer.
36. Collective Bargaining
(a) Collective bargaining denotes

negotiations looking forward to a
collective bargaining agreement.
(b) Characteristics of collective
bargaining:
1) Continuing legal relationship
Poquiz
2) Process of adjustment
3) Contract of reasonable benefits
4) Contract of relative equality
5) Agency of participatory
democracy
(c) Steps in collective bargaining

1) Preliminary process (Initiation)
– Submission of CBA proposal
by the union and counter-
proposal by the employer;
2) Negotiation – Bargaining
Negotiations; if there is a
collective bargaining deadlock,
it is resolved by the NCMB;
3) Execution – signing and
approval;

Poquiz
4) Publication – Posting the CBA
in (2) conspicuous place in the
company;
5) Ratification – by the employees;
6) Registration – the purpose is to
bar certification election;
7) Administration – joint
administration by the parties of
the CBA during its lifetime;
and
8) Interpretation and Enforcement
of the CBA.
37. Collective Bargaining

Agreement (CBA)
(a) CBA is the law of the plant.

Poquiz
(b) Term of the CBA – the life span
of the CBA is five (5) years as far
as the representation aspect is
concerned. However, the workers
may negotiate on other provisions
of the CBA no later than three (3)
years after its execution.
(c) Rules of retroactivity
1) The effectivity of the CBA shall
retroact to the day immediately
after the date of expiration of
the old CBA in case the new
CBA is concluded and entered
into within six (6) months from
the said expiration date.
2) If the new CBA is entered into
beyond six (6) months from the
expiration of the old CBA, the
Poquiz
parties are given the right to
negotiate the duration of the
effectivity.
Note: Retroactivity of the CBA
has no application in arbitral
awards by the DOLE Secretary,
the NLRC, or Voluntary
Arbitrator.
3) One-year extension of the CBA
is valid upon the agreement of
the parties. In fact, a 10-years
suspension of the CBA
negotiations is legally tenable
in order to promote industrial
stability and predictability
(Rivera v. Espiritu; 374 SCRA
351).
4) If no new CBA is concluded
with the expiration of the old
Poquiz
CBA, the latter is automatically
renewed under the automatic
renewal clause or principle of
hold-over or CBA continuity.
38. Appropriate bargaining unit

defined
An appropriate bargaining unit is

a classification of jobs or positions
where two or more employees
possess common employment
interests and conditions and which
may be reasonably combined
together for purposes of collective
bargaining.

Poquiz
The following are the tests of
determination:
(a) Globe election test – which is

the express will or desire of the
employee’s test.
(b) Community or Mutuality of
Interest Test – is reflected in
groups having substantial
similarity of work and duties or
similarity of compensation and
working condition.
(c) Prior collective bargaining
history test – In determining the
proper bargaining unit, another
test is the prior history (past
history) of collective bargaining
between the proposed bargaining
Poquiz
unit and the employer. Simply
stated, the past history of the
collective bargaining process is
resorted to in order to determine
the proper bargaining unit.
(d) Similarity of employment
status test – Determining the
proper bargaining unit is based
on the status of employment of
the workers. Thus, regular
employees should constitute one
bargaining unit; while, those
employees with brief or casual
employment status should
constitute another proper
bargaining unit.

Poquiz
39. Modes of determining
representation status
(a) SEBA certification – Sole

exclusive bargaining agency
certification.
(b) Consent election – Unions
agreed between and among
themselves to select the
bargaining agent through an
election conducted with or
without the intervention of the
DOLE.
(c) Certification election – an
election conducted among three
or more choices to determine the
exclusive bargaining agent. Under
the “double majority rule,” the
Poquiz
majority of the employees in the
bargaining unit must have voted
and the winner must have
garnered the majority of the valid
votes cast.
(d) Run-off election (automatic
second election rule) – an election
which provides for three or more
choices results in no chance of
receiving a majority of the valid
votes cast, the election officer shall
motu propio conduct a run-off
election between labor unions
receiving the (2) highest numbers
of votes for all contending unions
are at least fifty (50%) percent.
(e) Re-run election – an election
conducted to break a tie (a)
Poquiz
between two (2) contending
unions, (b) between a “no-union”
and one of the unions, or (c) a
failure of the election has been
declared by the election officer
and/or confirmed by the Med-
Arbiter (Sec. 2, D.O. 40-1-15,
Series of 2015).
40. Certification election (sole

concern rule/bystander rule) It is the
sole concern of the employees and
the employer is regarded as a
bystander. However, the employer
can file a petition for certification
election because it is requested to
bargain collectively.

Poquiz
(a) In the absence of collective
bargaining agreement, an
employer who is requested to
bargain collectively may file a
petition for certification election at
any time.
(b) Settled is the rule, the employer
is without “locus standi” to
oppose a petition for certification
election. It should maintain a
“hands-off” policy.
(c) Jurisdictional 25% consent
requirement. The petition for
certification election should be
supported by the written consent
of at least 25% of all the
employees in the appropriate
bargaining unit.
Poquiz
If the 25% is complied with,
certification election is
mandatory. However, if the 25%
is not met. It is still discretionary
to conduct a certification election
as it is the best forum in
determining the will of the
employees (Best forum rule).
(d) Certification election, barred

despite compliance with 25%
consent requirement. Certification
election cannot be conducted
under the following instances:
1) Contract-bar rule;

Poquiz
2) Outside of the freedom period
rule;
3) One-year bar rule;
4) Deadlock-bar rule;
5) Charge of company unionism
rule;
6) Negotiation-bar rule;
7) Appeal-bar rule;
8) Not listed in the registry of
unions rule.
(e) Exceptions to the contract-bar

rule; instances certification
election is conducted:
1) The CBA that is unregistered

will not bar certification
election. However, if the CBA
Poquiz
is an arbitral award, it need not
be registered.
2) The CBA is incomplete or
inadequate – sweetheart
contract.
3) The CBA was hastily entered
into frustrating the right of
employees to file a petition for
certification election at the
proper time.
4) The CBA entered during the
pendency of the certification
election.
5) The CBA was registered with
falsified supporting
documents.
6) The CBA entered into between
the employer and the union
Poquiz
that is not the exclusive
bargaining agent on the
company premises.
7) In case of mass
withdrawal/disaffiliation, of the
members from the majority
union. (f) Pre-election
conference – it is the machinery
of determining the eligibility
list of voters through an
inclusion-exclusion proceeding
before filing a petition for
certification election.
Thus, the employer cannot
question the qualification of
workers in a certification
election as the proper forum is
the pre-election conference or
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otherwise known as the
inclusion/exclusion proceeding
(Notre Dame v. Laguesma;
G.R. 149833, 29 June 2004).
(g) Effect of no-union

winning the election. It shall be
certified that indeed no
certification election shall be
conducted within one year from
the date of the final election result.
A no-union won because the

majority of the employees in the
bargaining are members of a
religious group (such as members
of the Iglesia ni Cristo) who are
allowed under the law not to form
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or join a labor union but can vote
in a certification election. They are
religious or conscientious
objectors.
41. Establishment of a grievance

machinery
Its purpose is to establish a

machinery for the expeditious
resolution of grievances arising from
the interpretation or implementation
of the CBA or company personnel
policies. Unresolved grievances shall
be referred to voluntary arbitration.
42. Conclusive arbitration clause in

the CBA
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The conclusive arbitration clause
is one of the mandatory provisions
in the CBA providing for grievance
machinery and voluntary arbitration
procedures.
However, a grievance may be

brought directly to voluntary
arbitration without passing through
the grievance machinery as it has
been proven to be ineffective in the
past or the parties inadvertently
failed to include grievance
machinery in their CBA. Also, the
parties may voluntarily agree to
submit their grievance directly to the
voluntary arbitration procedure

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(CENPELCO v. Macaraeg, 22
January 2003).
43. Original and exclusive

jurisdiction of Voluntary Arbitrators
(a) To hear and decide all

grievances arising from the
interpretation or implementation
of the CBA and company
personnel policies.
(b) To hear and decide wage
distortion issues in the unionized
establishment.
(c) To hear and decide grievances
arising from the interpretation or
implementation of the

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Productivity Incentive Program
under R.A. 6971.
44. Jurisdiction of VA by
agreement of the parties
(a) To hear and decide all other

disputes including ULPs and
bargaining deadlocks by
agreement of the parties.
(b) To hear and decide termination
cases by agreement of the parties.
45. Jurisdiction of VA on collateral

issues in the Submission Agreement
(a) To hear and decide on all

matters collateral to the main case
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subject of the Submission
Agreement such as an award of
reinstatement and backwages in
an illegal dismissal case (Ludo
and Luym Corp. v. Saordino, 20
January 2003). It includes all
matters cognizable by the Labor
Arbiter but referred to as
voluntary arbitration by
agreement of the parties such as
money claims and
legality/illegality strike and
lockout (San Jose v. NLRC, 17
August 1998).
46. Jurisdiction of VA over

violations of the CBA The VA has
jurisdiction over a violation of a CBA
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or an ordinary grievance under the
grievance machinery and voluntary
arbitration proceedings in the CBA.
However, if the violation of the CBA
is gross in character it is a ULP
cognizable by the Labor Arbiter.
47. DOLE Secretary’s

Administrative Intervention on
Dispute Avoidance (AIDA Power)
Either or both the employer and the
certified bargaining agent may
voluntarily bring to the Office of the
DOLE Secretary through a Request
for Intervention any potential or
ongoing dispute (strike or lockout)
not subject of any complaint or
notice of strike or lockout at the time
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of the Request for Intervention is
made (No. 1 DOLE Circular No. 1,
series of 2006).
48. DOLE Regional Directors and

Assistant Regional Directors
designated as Ex Officio Voluntary
Arbitrators (EVAs) (EVA Power)
All Regional Directors and

Assistant Regional Directors of the
DOLE are designated as Ex Officio
Voluntary Arbitrators that have
jurisdiction to hear and decide all
grievances arising from the
interpretation or implementation of
the CBA and company personnel
policies.
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The Secretary of Labor and
Employment may likewise refer to
EVAs Voluntary Arbitration cases
from DOLE Secretary’s Intervention
under the DOLE’s Administrative
Intervention for Dispute Avoidance
(AIDA) (D.O. 83-17, Series of 2007).
49. Voluntary Arbitrator’s decision

appealable to C.A. under Rule 43 of
the Rules of Court.
The decision of the Voluntary

Arbitrator is appealable to the Court
of Appeals under Rule 43, Rules of
Court within 10 days from receipt of
the decision of the Voluntary
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Arbitrator (Phil. Electric Corp. v.
C.A., G.R. No. 168612, 10 December
2014; Baronda v. C.A., G.R. No.
161006, 14 October 2015).
50. Strike and Lockout
A strike is a temporary stoppage

of work arising out of a labor or
industrial dispute. In the words of
the Supreme Court, it is the most
dangerous and the most lethal
weapon in the arsenal of the union.
On the other hand, a lockout takes
place when an employer temporarily
refuses to furnish work as a result of
a labor or industrial dispute.

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51. Kinds of Strike
(a) Authorized – with the approval

of the majority of the total union
membership.
(b) Unauthorized (wildcat) –
without the approval of the union
membership.
(c) General – it is a sympathetic,
political type of strike that covers
a wider region or territory of a
State. Example: Welga ng Bayan
(d) Particular – it is limited in
scope as it is staged in a particular
plant or a single occupation or
trade.

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(e) Slowdown – the workers try to
reduce production to compel the
employer to grant their wishes.
(f) Sit down – the workers remain
in the plant but refuse to work
and their machines or tools
remain idle.
(g) Quickie – it is related to
slowdown which is characterized
by a brief work stoppage for a
period of a few minutes or hours.
(h) Sympathetic – staged in the
absence of an employer-employee
relationship.
(i) Political – it resembles that of a
general strike staged in redress of
grievances against the

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government. This is also known
as a cause-oriented strike.
(j) Unfair labor practice – staged in
violation of the right to self-
organization.
(k) Economic – staged as a result of
bargaining deadlock.
(l) Union recognition strike –
staged to compel the employer to
recognize the union as the
bargaining agent.
(m) Good Faith – staged by the
union (without compliance with
strike requirements) on the belief
that the employer was committing
an unfair labor practice which
was later found to be untrue.
According to the Supreme Court,
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it is illegal because good faith is
not a defense in a strike (Grand
Boulevard Hotel v. Dacanay, G.R.
No. 153655, 18 July 2003).
(n) Legal – staged in compliance
with the requirements for staging
a lawful strike.
(o) Illegal – requirements for
staging a lawful strike are not
complied with.
52. Requirements for a valid strike

(a) It must be based on valid
grounds;
(b) It must be approved by the
majority of the union membership
in order to prevent a wildcat
strike;
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(c) It must be declared on (2)
strikeable issues: (1) collective
bargaining deadlock, or (2) unfair
labor practice; and
(d) Filing of the notice of strike to
the NCMB: (1) bargaining
deadlock – 30 days, (2) unfair
labor practice – 15 days (cooling-
off period).
In case of dismissal of union

officers which may constitute
union busting where the existence
of the union is threatened, the
cooling-off period need not be
observed (Capitol Medical Center,
Inc. v. NLRC, G.R. No. 147080, 26
April 2005). In case of union
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busting, the cooling-off period can
be dispensed with but the strike
vote report requirement (7- day
strike ban) being mandatory in
character, shall “in every case” be
complied with (Sukhotai Cuisine
v. C.A., G.R. No. 150437, 17 July
2006).
(e) Compliance with the 24-hour
prior notice rule. The failure of the
union to comply with this
requirement will render the
subsequent strike staged by the
union illegal (Ibid).
(f) If the result of the strike vote
ballot is filed within the cooling-
off period, the 7-day waiting
period shall be counted from the
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day following the expiration of
the cooling-off period.
Illustration:
(1) Economic strike – 30-day
cooling-off period plus 7-day
strike ban equals 37 days; but a
strike is staged only on the 38th
day.
(2) Unfair labor practice strike –
15-day cooling-off period plus
7-day strike ban equals 22 days;
but a strike is staged only on
the 23rd day.
(g) In strikes/lockouts in hospitals,

it is the duty of the striking union
or locking-out employer to
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provide an effective skeletal
workforce of medical and health
personnel to insure adequate
protection of the life and the
health of patients (Article 278,
Labor Code).
53. Doctrine of means and

purposes
The strike to be valid, its purpose
and objective must be lawful.
However, the strike may still be
declared invalid, if the means used
in attaining the purpose are illegal
(AIUP v. NLRC, 364 Phil. 697,707
[1999]).

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54. Assumption power of the
President/Secretary of Labor under
Article 278g of the Labor Code
Under Article 278g of the Labor

Code, the President/Secretary of
Labor is granted an extraordinary
pre-emptive power to assume
jurisdiction over vital industry
disputes. By nature, such
assumption power is plenary, full,
complete, and at the same time
discretionary. Such power is limited
only to national interest cases.
55. Legal effects of an Assumption

Order

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(a) It has the effect of a writ of
injunction;
(b) The striking workers shall
return to work; otherwise, they
could be validly dismissed
because they are already engaged
in the prohibited activity;
(c) Return-to-work order is not
necessary in an Assumption
Order. The mere issuance of an
Assumption Order automatically
carries with it a return-to-work
order.
(d) Assumption Order
contemplates only actual
reinstatement; however, under
special circumstances, they could
be reinstated in the payroll;
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(e) With the Assumption Order
issued, the Secretary of Labor can
take cognizance of cases under the
jurisdiction of the Labor Arbiter;
and
(f) Cases pending with the Labor
Arbiter can be taken over by the
Secretary of Labor, provided they
are the issues under the
assumption.
56. Strike and picketing,

distinguished
The strike to be effective, there

must be effective picketing. There
can be no strike without picketing;
however, there can be picketing
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without a strike, because picketing is
a part of freedom of expression
guaranteed under the Constitution
(Thornhill v. Alabama, 310 US 88).
Picketing is the marching to and

fro of the strikers at the company
premises usually accompanied by
the display of placards and other
signs making known to the public
the facts in a labor dispute (IBM v.
NLRC; G.R. No. 91980, 27 June
1991).
57. Government employees

prohibited to strike

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A strike of government employees
is a form of an insurrection against
public authority in the light of the
principle of State sovereignty.
Allowing government employees to
strike will tremendously affect the
delivery of vital and basic services to
the public. Since government
employees are civil servants, the act
of striking is a civil service offense
violative of the civil service law (P.D.
807, as amended).
However, employees of
government-owned or controlled
corporations without original
charters known as corporate
offsprings or subsidiaries are
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allowed to unionize, bargain
collectively, and stage a strike.
Terms and conditions of
employment in government
subsidiaries are governed by the
Labor Code (Lumanta v. NLRC, 170
SCRA 79; NASECO v. NLRC, 168
SCRA 122).
58. Liability of union officers and

members in an illegal strike
With the declaration of illegality of
strike, the union officers are liable
for dismissal for knowingly
participating in an illegal strike or
committing illegal acts during the
strike. However, a worker merely
participating in an illegal strike may
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not be terminated from employment,
unless he participated actively in the
commission of illegal acts (VCMC v.
Yballe, G.R. No. 196156, 15 January
2014).
In an illegal strike, union officers

are liable for dismissal under the
doctrine of vicarious liability.
59. Strikers not entitled to

economic benefits; exceptions
In an economic strike, the strikers

are not entitled to backwages under
the principle of “no-work, no-pay.”
However, under the following, they
could be granted such benefits:
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(a) Strikers were discriminatorily
dismissed;
(b) Strikers were illegally locked-
out by the employer; and
(c) Strikers unconditionally
offered to return to work; but
rejected by the employer (PBTC v.
PBTC Employees Union, 69 SCRA
10).
-∞-

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LABOR LAW

1. Favored treatment clause – In case of

2. Principles of Equipoise- Where the

3. Protection of labor clause - There is a

1 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

4. Promotion of full employment clause-

3. Social justice clause – The target of this

2 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

1. Four-way test in determining employer-

a) selection or engagement of the

3 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

4 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

5 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

(a)The right to discipline employees;

7 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

8 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

9 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

10 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

11 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

(1)Types of illegal recruitment:

(a)Simple - committed by a licensee

12 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

(2)In large-scale illegal recruitment, the

(3)Doctrinal rulings on illegal

13 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

14 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

(4)Illegal recruitment and estafa cases

15 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

(6)Although the recruitment agency

(7)Liability of the previous owner not

16 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

(8)Nature of OFW’s employment is

(1)It is settled labor standards benefits

17 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

(2)May the Secretary of Labor take

(3)May the voluntary arbitrator take

(4)May the Regional Director of the

18 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

(5)May the Regional Director take

19 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

E. Labor-only contracting vs. Permissible

(1)Labor only contracting is against the

(2)What is the legal effect if there is a

20 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

(4)Distinctions between legitimate job

(a)The legitimate job contractor

21 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

22 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

(5)What are the tests in determining

(a)Registration test – which requires

23 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

(d) Legal rights and compliance

24 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

25 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

(a) Reinstatement – the

26 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

27 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

28 LABOR LAW as per SC syllabus - Dean Salvador A. Poquiz

(a) Pre-Notice (First Notice) or